Insiders Guide to New Developments

Utilizing my 7+ years of new construction and development experience in consulting, sales and management of sales offices, I've prepared a four part guide to new developments for your benefit. Here's Part I, with subsequent parts coming in the following week:

Part I - Visiting the office

Many people that visit a sales office think they're heading into enemy territory, like a car dealership. In actuality, it's not a scary place where you're going to get bamboozled into the Pinto of condos. There's no way the sales office is going to convince you to buy a half million dollar plus home you don't want, regardless of how good they are as agents. Instead, go in looking at the sales team as the agent for the developer, knowing that they work exclusively for the developer, just like an existing, resale property. Take what they say with a grain of salt, and dig beneath what they say to find the information you need to make an informed decision.

What to expect:

When you first enter the office, they will ask you to fill out a registration form. They will ask for your contact information, some demographic questions, and how you heard about the development (for marketing purposes). Don't feel nervous about filling it out; most agents don't do anything with the information, especially if you say you're not interested at the end of the visit. If you are interested, a good agent will usually follow up and help you when you're ready to buy, and not be pushy about it.

If the building is complete (or nearly), you will probably be taken on a guided tour. If not, they will show you pictures, renderings, floor plans, and potentially a mockup of a model unit in the office.

A good agent will ask questions...lots of them. Don't get offended if the agent asks you what you do for a living, how much you make, or what you like to do in your spare time. The truth is that agents see upwards of 20 groups of people per week; we have a general idea of who is the right buyer for the project based on reoccurring demographics (and yes, income) of A and B prospects. The agent is just cutting to the chase, saving you time, and getting to know you in the process. If you can't get financing, it's best to find out up front before you get excited about a place you can't afford or qualify for a loan. During my years in management at sales offices, I've had my fair share of people say "that's none if your business", or "why does that matter". But I've become good friends with prospects who didn't buy at my buildings because I got to know them pretty well (and quickly).

If you have specific questions in mind, bring them and ask them throughout the tour. If not, don't worry. You'll think of them as you walk. The main thing to focus on is getting to know the vibe of the building and neighborhood.

Do I need an agent?

The short answer is no. If you don't, the sellers agent will act as your agent as well. But the long answer is more complicated.

We'll pick up on that in Part II - Ready to buy.

If you have any specific questions that haven’t been answered here, please feel free to email me at HighRiseSF@gmail.com. Answers to the most relevant questions will be posted in Part IV – Your Questions.